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"But that doesn't mean we have a deal until the Iraqis agree," the official said. "We may have a text, but do we really have an agreement? We don't until the Iraqis sign off."

With the United Nations mandate authorizing the U.S. troop presence in Iraq expiring December 31, U.S. officials are examining "contingencies" in case the Iraqi government is unable to sell the deal to the country's various factions, the U.S. official said.

One issue that had held up negotiations was whether U.S. troops will remain immune from Iraqi law. The U.S. official said negotiators had "reached a compromise" on the issue, but details of the immunity compromise weren't available.

Baghdad has sought the authority to arrest and try Americans accused of crimes unrelated to official military operations. It also wants jurisdiction over troops and contractors who commit grave mistakes in the course of their duties.

Over the weekend, Iraqi Foreign Minister Hoshyar Zebari said he thought the draft's language concerning the immunity issue "could be supported by Iraqi leaders."

"I think both sides offered whatever they have, so I think now we have a text that is reasonable," Zebari said.

Majid said al-Maliki will show the draft Wednesday to the Political Council for National Security, a body that includes al-Maliki, Talabani, the two vice presidents, leaders of political blocs and the parliament speaker.

If those groups are approve the draft, al-Maliki will submit it to his Cabinet and ask for members to approve it by a two-thirds majority, Majid said. As a final step, al-Maliki will submit it to the Iraqi parliament to approve the draft.

If Iraq's various executive councils and parliament do not approve the deal, fallback options include "a new U.N. Security Council resolution legally authorizing the extension of the U.S. footprint" or an "informal agreement between the United States and the Iraqis," the U.S. official said.

The official said that there is a general consensus within the Bush administration on the draft and that Congress expects to be briefed on the draft "soon."